Warren Buffett is the world’s top
business investor and philanthropist. He is the CEO, primary shareholder
and Chairman of Berkshire Hathaway, and is ranked amongst the world’s
wealthiest people. Known as the wizard of Omaha, he is well known for
his value investing philosophy. If you want to invest like Warren
Buffett, there are several books, which have inspired and therefore,
have been recommended by this influential man -setting you on the right
path of investing enlightenment. So here is a brief overview of the most
influential books which will set you on the right path to buying stock
like Warren Buffett.
The Intelligent Investor by Benjamin Graham
This book was written by the second most
influential man in Warren Buffett’s life right after his father.
Benjamin Graham, also known as the father of value investing was the
mentor of Buffett grounding him with the basic intellectual framework.
The book was published in 1949 and since then it has sold millions of
copies worldwide. This book, which has been praised by Warren Buffett as
the best book ever to be written, focuses not on profit maximization
but on loss minimization. The Intelligent Investor is not a book for the
day traders or speculators but for true investors. The best part about
this book is that it is suitable for laymen giving guidance in adoption
and execution of an investment policy.
The Little Book of Common Sense: The Only
Way to Guarantee Your Fair Share of Stock Market Returns by John C
Bogle. This book gives the most practical advice complete with the
expert evaluations, showing you that investing is all about common
sense. This book will not only change your investment attitude, but will
also be your bible that guides you towards the successful path,
regarding how to add to your portfolio, using the strategies of
certified investment.
Take on the Street: What Wall Street and Corporate America Don’t Want You to Know by Arthur Levitt.
Arthur Levitt was the longest serving
chairman of the United States Securities and Exchange Commission,
supervising the dotcom boom days of the 90′s stock market. In this book,
Arthur Levitt reveals the tactics of corporate America for hoarding the
billions poured into mutual funds as well as stocks by working
Americans. Levitt also reveals how to invest into the stock market, and
also in the mutual funds intelligently. He focuses his advice towards
the individual small investors and guiding them about the exploitation
detection tips, evaluating the press releases and the annual reports,
and also discussing about the tactics worth adopting, so as to benefit
more from the trustworthy sources.
The Theory of Investment Value by John Burr Williams
It was 1938, when the first edition of
this book came into the market. Today it is still considered to be one
of the most trustworthy books, which discusses the financial asset
evaluation. Burr Williams has combined concepts with actual experiences
that took place in the investment world, giving verifiable insights. The
breakthrough discovery made by Williams was to give an educated guess
that provides a fundamental value called the Dividend Discount Model;
this value is still subject to question in the market’s institutional
sectors by the professional investors.
Paths to Wealth through common stocks By Philip Fisher
Designed to help those investors who have
management queries and issues, this book contains one innovative
concept after the other -aiming to lend a hand to every business that
needs honest advice regarding investments. In this book, Philip Fisher
reveals why worthwhile profits that generate from ownership of common
stocks reduce the risk while increasing profits. Many of his ideas in
this book are based on orthodox strategies of investment, which are
still able to acquire remarkable returns – as a result they are of the
utmost relevance in today’s market.
Security Analysis: Principle and Technique by Ben Graham and Dave Dodd
For nearly 70 years, Benjamin Graham’s
theories recognized as the groundbreaking ones, have inspired and
influenced investors. The Security Analysis, publication of 1934, is no
less than a bible for both professional and potential investors. The
second edition, from 1940, has been Graham’s protégé Warren Buffett’s
most inspirational book.
Common Stocks and Uncommon Profits by Philip A Fisher
Contemporary finance professionals such
as Warren Buffett use Philip A Fisher’s investment principles as he is
regarded as the pioneer of modern investment theory. This book
identifies the value of the maximum length growth stocks as compared to
the small duration stocks, and their impacts on the initial foundation
of any business/investment. Published in 1958, this investment classic
is considered as the foundation for many of today’s investment
philosophy and beliefs.
Where Are the Customers’ Yachts? Or A Good Hard Look at Wall Street by Fred Schwed, Jr
This book is known to be amusing and
engaging, as it reveals the Wall Street’s hypocrisy and foolishness. The
subject of discussion represents a story of a guest in New York who
naively asks after admiring the yachts of brokers and bankers, where the
yachts of the customers were? This shows that the customers were unable
to afford yachts, although they were in constant interaction with their
investment advisors, i.e, the brokers and the bankers.
Author is the founder of the free online
education site, Warren Buffett Books, which teaches students how to
invest like Buffett. The site requires no sign-up or fee and it offers
over 10 hours of video based lessons that teach students step by step
methods to invest like Warren Buffett. Be sure to follow this link to
watch a video on Warren Buffett Book.
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